News & Notice

News & Notice
Subject tradeKorea, Emerging a successful on-line export market in the severe economic slowdown Date 2009-07-01 10:30:34




KITA’s Global e-marketplace, tradeKorea,

Emerging a successful on-line export market in the severe economic slowdown


□ The Korea International Trade Association (chaired by Lee Hee-Beom) opened a global B2B trade platform, tradeKorea (, on April last year in order to provide small and medium-sized trading enterprises (SMEs) with overseas marketing support. TradeKorea is gaining popularity, serving as a new export window to SMEs which suffer from much difficulty in the global economic downturn.


□ KITA conducted a survey on transaction performance of domestic companies and overseas companies run by Korean compatriots and had interviews with officials of the companies. The research result shows that trade volume through tradeKorea has reached $50 million since tradeKorea was launched 9 month ago.


□ Trade volume was $200,000 to $400,000 on average per company. However, it turned out that there were also large-scale transactions in which buying offers worth $10 million were made for some items.


# Example No.1) Company I, a medium-sized chemical company located in Seoul, exported $10 million worth of products annually. A buyer in Taiwan made a buying offer to Company I through tradeKorea to purchase $10 million worth of automobile oil. Now, Company I is on the verge of striking an export-related deal after a several times of consulting.


□ Trade items range from products that are light, thin and small including neckties, bags, accessories, processed green tea, valves and small electronics to heavy chemical products such as used cars (Uzbekistan), elevators (Myanmar) and sulfur products (China). In particular, recently, green growth industry-related products started to be traded such as photovoltaic power generation system (China, South Africa) and new and renewable energy facilities (the U.S.), grabbing much attention.


□ In the meantime, tradeKorea facilitates domestic companies’ export and helps overseas companies run by Korean compatriots conduct trade not only with domestic companies but also with the third countries. This demonstrates that tradeKorea is used as a new channel for the global trade.


# Example2) Company S, a trading company located in Yiwu, China run by Korean compatriots got a trade offer from a Greek buyer to purchase clothing submaterial such as buttons and felt worth $100,000. After 4 times of consultation through the Internet, they struck an export deal.


□ An official from KITA explained several reasons for export facilitation through tradeKorea for a short period of time as follows; first, tradeKorea provides an effective 1:1 intermediation service by trade experts of tradeKorea, considering companies’ supply capability and market condition. Second, tradeKorea expanded global marketing channels through cooperation with leading companies in the world such as Alibaba and E-Bay. Third, global buyers’ interest in Korea which provides high quality products at reasonable prices is increasing as the biggest market for global sourcing, China, generated a series of incidents in the market. Fourth, trading companies voluntarily decide to have commercial transactions through tradeKorea with no extra marketing cost as it provides promising export companies support for making e-catalogue and related-services such as interpretation and translation free of charge.


# Example No.3) Company W of U.S., a water purifier distributor, asked Director Mr. L of tradeKorea service center, an intermediation expert, to recommend Korean companies for trade when an official from Company W visited KITA on June last year. In response, Director Mr. L recommended Company N, an alkali ion water purifier manufacturer located in Seoul with capacity to provide high quality products just in time, to Company W. Afterwards, consultation went successfully and two companies struck a $1.1 million worth of export deal (on Sep 1st). Now, additional export deal worth $1.4 million is under way.



□ Lee Jae-Hyun, Managing Director of e-Biz Bureau of KITA said “due to the global economic recession, overseas buyers are more worried about high-cost, sporadic traditional sourcing methods caused by exhibitions and consultations. So, they are turning their eyes toward global sourcing based on on-line B2B trade intermediation where they can save money and face no limit of time and space.”


   He also highlighted “KITA will strengthen new services such as providing customized intermediation service to match with overseas buyers and offering buyers’ credit information not only for domestic SMEs with good performance and foreign companies run by Korean compatriots. Through this effort, KITA plans to expand export transactions through tradeKorea furthermore.”



What is tradeKorea?

Korean Economic Network



□ tradeKorea is a global e-Market Place that KITA launched on April 8th of last year to provide overseas marketing for trading companies and facilitate trade between Korean SMEs, compatriots’ companies and overseas buyers through the Internet.


□ KITA help promising small trading companies registered in tradeKorea create e-catalogue for free to support overseas marketing and export for domestic SMEs. In addition, it also provides a special service for export support such as 1:1 match-making service for companies.


□ In particular, tradeKorea is co-marketing products of Korean export companies registered in the list of tradeKorea to the world’s buyers in cooperation with global leading companies in e-commerce such as Alibaba and E-Bay. It also pursues various on-line marketing projects including e-Pioneer and e-Purchase consultation.


□ Meanwhile, through cooperation with OKF(Overseas Korean Foundation) and OKTA(Overseas Korean Traders Association), tradeKorea supports trade with 7.5 million Korean compatriots and domestic small trading companies. To this end, tradeKorea established and runs <Korean Economic Network>.



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